“Maker made history in 2017 as the first blockchain-based protocol to launch a major automated cryptocurrency-lending platform, helping to initiate a boom in what’s known as decentralized finance, or DeFi.
Now Maker is paving the way for what might become another source of growth in the now-$60 billion DeFi industry: lending against trillions of dollars of “real-world” assets like residential properties, in competition with banks and other financiers.
On Wednesday, members of the MakerDAO community – the decentralized organization that governs the project – passed an executive vote to allow an ERC-20 token representing an ownership stake in a pool of real estate assets as collateral.
This is DeFi taking on traditional finance.
The latest move to add real-world assets greatly increases the addressable market for collateralized loans.
Notably, Citigroup wrote about the report last week, calling referring to MakerDAO as ‘the decentral bank.‘”
“Miners have raised Ethereum’s gas limit to almost 15 million for the first time in a bid to relieve transaction congestion at a time when on-chain activity is increasing with ether’s price.
The Ethereum gas limit sets a ceiling for how many operations can be included in each block. Before the increase, miners set Ethereum’s gas limit at 12.5 million until Ethereum creator Vitalik Buterin suggested raising it last week on Reddit, in light of recent code optimizations activated on the network.
Now that the chain is safer, we can increase the gas limit, which makes every application cheaper.
This is the seventh time in Ethereum’s history that miners have voted to increase the gas limit as a temporary solution to rising network fees. Along with the increase, Ethereum developers are also working on a parallel blockchain network, dubbed “Ethereum 2.0,” to reduce the issue of high fees and network congestion for the long-term.”
“The ratio was 48% as of 15:44 coordinated universal time (11:44 a.m. ET) and came as ether (ETH), the native cryptocurrency of the Ethereum blockchain and the second-largest overall, surged to a new all-time high.
It’s a signal the market is risk-on and ‘alts’ are outperforming. This is the scenario we’ve been seeing lately, and it reminds us of mid-2017.”
“Binance, the largest cryptocurrency exchange by volume, has attracted the attention of regulators for selling “stock tokens,” designed to track the performance of shares. Red flags have already been raised by Hong Kong law firms regarding the two tokens launched earlier this month.
U.K. regulator the Financial Conduct Authority told the FT it is ‘working with the firm to understand the product, the regulations that may apply to it and how it is marketed.’
If the tokens are transferable, can be traded at a crypto exchange and are equipped with economic entitlements like dividends or cash settlements, they represent securities and are subject to the obligation to publish a prospectus.
Tesla and Coinbase token holders are indeed entitled to potential dividends, Binance said, but don’t confer any of the voting rights associated with regular securities.”
“Wyoming has become the first state to clarify the legal status of decentralized autonomous organizations (DAOs), allowing Wyoming to recognize DAOs as limited liability corporations (LLCs), effective July 1. Proponents of the law say that it will protect DAOs from being sued as general partnerships in court and makes the rights of DAOs as legal persons enforceable in court.
We look for feedback from the user community to understand any shortcomings of the LLC structure so that we can improve our existing DAO legislation and consider further DAO corporate supplements. Maybe we need a DAO C Corp next to address other challenges. We’re certainly not done yet.”
“One of Morgan Stanley’s new bitcoin-only private funds raised $29.4 million from 322 investors in its first 14 days. In just 14 days, Morgan Stanley’s FS/NYDIG fund has become one of the most popular private bitcoin vehicles, beating out far-older industry offerings from Pantera and Galaxy by investor count.
The early returns for “FS NYDIG Select Bitcoin Fund LP” indicate investors are indeed hungry for accessing bitcoin products through their institutional managers. Passive funds like Morgan Stanley’s fare give clients unwilling to custody their own keys an easy way into the asset class.”
“Canada’s largest digital asset manager, 3iQ Corp, aims to raise over $200 million in proceeds from the dual listing of its 3iQ Coinshares bitcoin exchange-traded fund (ETF) in Dubai. Launched in 2020, 3iQ’s ETF is the first cryptocurrency fund to go public in the Middle East. The company received regulatory approval for the dual listing earlier this week.
We trade on the North American market times, and Dubai is almost perfectly opposite of what our trading hours are.”
“The problem right now for crypto traders is that to get loans or receive leverage from lenders like Celsius or BlockFi, they need to over-collateralize.
Using the X-Margin Credit system, if Celsius is going to lend to a hedge fund like Dunamis, the fund’s risk profile is made available on the fly, based on all the positions it has across venues like Binance, BitMEX or Deribit, for example. This is done using anonymous data thanks to zero-knowledge proofs (ZKPs), so the lender is not privy to the hedge fund’s whole trading strategy.
X-Margin Credit is a provably unbiased arbitrator of trading risk. We calculate trading firms’ overall risk so that lenders extending credit can make real-time decisions about that, without traders needing to reveal their sensitive trade data to anyone, including us.”
“Heavy scrutiny of coal mines in Xinjiang, new regulations on high energy-consuming companies in Inner Mongolia and the end of a local energy policy in Sichuan have unnerved some bitcoin miners in China. The regulatory challenges from these three regions are distinct, but they epitomize some of the biggest long-term policy risks when Chinese crypto miners deal with local authorities.
With so much hashrate concentrated in China, the volatile regulatory environment for Chinese miners can have significant ripple effects on bitcoin’s global market.”
“The CEO of Turkish crypto exchange Thodex has gone missing at a time when users filed a complaint alleging hundreds of million of dollars have been stolen. Exchange executives are deactivating their social media profiles and the platform’s customer support group is inaccessible.
Before shutting down transactions, Thodex was trading more than $585 million in cryptocurrencies on its exchange. The exchange also had about 400,000 users, 390,000 of whom were trading actively.
People in Turkey have increasingly been turning to crypto as a hedge against inflation. Earlier this month, the central bank announced that the republic was banning the use of cryptocurrencies for payments. Crypto trading remains unaffected by the new law, which is set to go into effect at the end of the month. So Thodex’s sudden disappearance appears to be an isolated incident.
There may be a scam here because there have been problems with this exchange for days.”
“The Seychelles-based exchange is adding spot, brokerage, custody, information products and educational service. No time frame was given for when the products would be made available.
The exchange also said it would be seeking “additional licenses in highly respected jurisdictions.” Derivatives are to remain at “the heart” of BitMEX’s business, however, according to the post.”